What range represents the acceptable attrition pay percentage?

The acceptable attrition pay percentage is critical for understanding how an organization can balance its workforce management and operational costs. The range of 80% to 120% is considered correct because it allows for a healthy buffer that accommodates variations in employee turnover without inducing financial strain.

In many organizations, particularly those with dynamic labor needs, some level of attrition is expected and can even be beneficial, potentially bringing in fresh talent and ideas. The specified range supports organizational flexibility, allowing for shifts in workforce size due to market demands, without overly penalizing the organization for fluctuations in employee retention rates. This helps ensure that the organization's financial commitments remain stable even as workforce dynamics change.

A narrower percentage range would be restrictive and may not accurately reflect the realities of employment cycles, where attrition rates can fluctuate significantly. Thus, the range of 80% to 120% effectively encompasses normal variations in attrition while maintaining responsible financial management.